Halliburton Company (HAL)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 2.06 2.14 2.14 2.14 2.05 2.10 2.15 2.19 2.31 2.39 2.29 2.25 2.14 2.30 2.22 2.11 2.30 2.39 2.26 2.22
Quick ratio 1.27 1.32 1.32 1.34 1.30 1.33 1.39 1.39 1.56 1.56 1.41 1.35 1.27 1.34 1.26 1.23 1.40 1.46 1.39 1.39
Cash ratio 0.40 0.38 0.39 0.36 0.44 0.40 0.47 0.48 0.71 0.67 0.61 0.58 0.58 0.54 0.44 0.27 0.46 0.33 0.24 0.27

Halliburton Co. has shown consistent liquidity strength over the past eight quarters based on its liquidity ratios. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been fairly stable around the range of 2.05 to 2.19. This indicates that Halliburton has more than enough current assets to cover its current liabilities, suggesting a comfortable liquidity position.

The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Similarly, Halliburton's quick ratio has been consistent and slightly higher than 1, ranging from 1.48 to 1.61. This indicates that the company has a strong ability to meet its short-term liabilities without relying on selling inventory.

The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, has fluctuated more for Halliburton. However, the company has generally maintained a cash ratio above 0.5, indicating that it has a sufficient amount of cash to cover its current liabilities, albeit with less cushion compared to current assets.

In summary, Halliburton Co. has demonstrated solid liquidity ratios over the past eight quarters, with current, quick, and cash ratios all showing levels that imply a healthy ability to meet short-term obligations.

See also:

Halliburton Company Liquidity Ratios (Quarterly Data)

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 189.70 226.03 158.22 62.03 -20.47 -28.07 17.94 115.01 99.84 277.93 307.70 154.00 141.35 127.08 122.65 132.49 155.16 508.27 292.70 97.50

The cash conversion cycle of Halliburton Co. has fluctuated over the past eight quarters, ranging from a low of 78.61 days in Q4 2023 to a high of 91.56 days in Q1 2022. The company's cash conversion cycle represents the average number of days it takes for Halliburton to convert its investments in inventory, accounts receivable, and accounts payable into cash.

A lower cash conversion cycle indicates that Halliburton is managing its working capital efficiently and is able to convert its assets into cash quickly, providing liquidity to the company. Conversely, a higher cash conversion cycle suggests that there may be delays in the conversion of assets into cash, potentially impacting the company's financial health and liquidity.

Overall, it is important for Halliburton to monitor and optimize its cash conversion cycle to ensure effective working capital management and maximize its cash flow performance. fluctuations in the cash conversion cycle over time may warrant further investigation into the company's operational efficiency, supply chain management, and accounts receivable and payable processes to identify areas for improvement.